The Real Deal New York

New pattern as fashion companies buy retail condos

Fashion companies are increasingly purchasing their New York City retail condominium units, in an effort to escape paying sky-high rents every month.

Rigo Holdings, the real estate division of a private fashion firm, paid $11.5 million last month for two condos at Solar Realty Management’s 57 West 38th Street. The three-floor space will house showrooms.

“[Fashion firms] are no longer sewing, but they are selling [in the garment district],” EVO Real Estate Group broker Jonata Dayan told Crain’s. “If you want to be in the business, you need to have a showroom in New York.”

Dayan said she is handling marketing of a West 38th Street retail condominium that several fashion companies have checked out. [Crain’s] — Mark Maurer